Job-Killer: Speaker Pelosi's Gov't Takeover of Health Care Destroys Small Business Jobs
Small Businesses Hit With More Than $150 Billion in Tax Increases Under House Health Care Bill Surtax, According to Nonpartisan Analysis
Washington,
Nov 4 -
The U.S. economy has lost more than three million private sector jobs since the trillion-dollar ‘stimulus’ became law, according to the newest ADP National Employment Report . Most of these job losses have come from small businesses, which have historically represented the nation’s most significant source of job creation. In spite of all that, out-of-touch Washington Democrats are moving forward with Speaker Nancy Pelosi’s (D-CA) plan to fund her 2,032-page government takeover of health care on the backs of those very businesses. A new analysis by the nonpartisan Joint Committee on Taxation (JCT) has found that the surtax imposed by Speaker Pelosi’s health care bill would raise taxes on small businesses by at least $150 billion. According to methodology developed by Dr. Christina Romer, chair of the Council on Economic Advisors, and Jared Bernstein, the Vice President’s chief economist these sorts of tax increases – coupled with the employer mandates in the bill – would result in as many as 5.5 million more jobs lost. With out-of-work families struggling to make ends meet asking “where are the jobs,” Republicans have offered better solutions to help small businesses grow and provide quality, affordable health insurance to their employees without adding to the crushing debt Washington Democrats have placed on our children and grandchildren.
The Small Business & Entrepreneurship Council reacted to the JCT’s findings by highlighting the impact of these massive, job-killing tax increases:
"No wonder small business owners are gripped by uncertainty. With mixed messages coming from Washington, they don't know whether to add to their payrolls, hoard cash, cut jobs or stay-the-course. More than $150 billion of the proposed surtax alone falls on the backs of small business owners, according to the JCT. When will those who support these tax hikes wake up to the fact that they are sucking oxygen out of the very businesses that need this capital for survival and growth. Businesses can't save or create jobs without money. All of the tax increases proposed in the House health bill will deprive the private sector of the capital it needs to hold onto their workers, create more job opportunities, invest, innovate and grow."
The nation’s leading advocates for America’s small businesses are speaking out about the massive, job-killing tax increases in Speaker Pelosi’s government takeover of health care:
• National Association of Manufacturers (NAM): “Manufacturers get hit especially hard by these tax increases because of the intense capital demands of modern manufacturing. … Adding a surtax onto individual rates that are already expected to rise means that federal tax rates will skyrocket to nearly 50 percent for these manufacturers (with state taxes adding even more burden.) These new taxes will have massive negative consequences for manufacturing which has already lost 2.1 million jobs in this recession. Furthermore, premiums will increase because more people will be in plans that pay doctors and hospitals at lower, government negotiated rates, which will ultimately cause a shift in costs to private insurance payers. Our nation is desperately struggling to recover from a steep economic downturn and unemployment continues to hover close to 10 percent. We urge Congress to consider the heavy burdens it will be placing on small businesses and employers with this bill.” (Release, 10/29/09)
• The National Federation of Independent Business (NFIB): “H.R. 3962 is the ‘how to’ on how NOT to do health care reform. As we have said since its original introduction, this bill is not the kind of reform America’s small businesses need nor want. Small businesses have long supported reform that provides more affordable and accessible health care options for them and their workers. The House health care bill will do nothing to lower costs, increase choices, or produce a more competitive marketplace. Instead, it will actually harm small business owners with its expensive employer mandates, punitive payroll taxes and new government-run program – all of which will only result in more money coming out of small business owners’ pockets.” (Release, 10/29/09)
• The U.S. Chamber of Commerce: “Employers will be required to either provide a government-mandated level of health care coverage regardless of the employer’s ability to pay or face a penalty of 8% of payroll. This will result in job loss and lower wages, reduce flexibility and choice, and raise the cost of providing benefits to employers. Preserving employer flexibility is critical for ensuring quality care. The spending in this legislation is financed through a vast array of new taxes at a time when the economy is still fragile and the employer community is struggling to create and retain jobs. This includes a $461 billion surtax that will devastate many small businesses. This tax surcharge would raise the effective income tax rate for many taxpayers and business owners who are structured as S-Corps, that pay their taxes at individual tax rates.” (Release, 10/29/09)
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